In spite of legal challenges and the upcoming election, the White House is proceeding with a new extensive student debt relief plan as Joe Biden’s presidency comes to a close.

On Friday, the Education Department revealed a long-awaited proposal that the Biden administration claims could forgive loans for around eight million Americans.

This proposal is likely to be one of the final substantial actions related to student debt that the Biden administration can take before the new president is elected in early November.

Under this proposal, the U.S. education secretary would be empowered to automatically eliminate the debts of potentially millions of borrowers who are expected to default on their loans in the next couple of years, contingent upon specific criteria including household income, assets, and existing debt.

Additionally, the plan proposes introducing a new application process that would allow borrowers facing various forms of “hardship” to seek loan forgiveness. This could encompass issues like chronic illness, accruing medical debt, childcare expenses, and the effects of natural disasters.

During a call with reporters on Thursday, Lael Brainard, the national economic advisor, emphasized how recent natural disasters in the U.S. highlight the need for Americans to avoid the added stress of student loan repayments during unexpected life challenges.

“Just within the last month, we’ve witnessed the devastation people endure when disasters like Hurricanes Helene and Milton strike,” Brainard commented. “It’s unfair to add the burden of repaying student debt during such critical times.”

Rep. Virginia Foxx, a Republican Congresswoman from North Carolina and the outgoing chair of the House education committee, criticized the plan, labeling it a “blatant attempt to bribe voters” just before the elections.

The proposal, which was approved by federal negotiators in February, stands apart from other facets of a broader student debt relief strategy that Biden promised in April. That initiative, which has faced legal delays even before its finalization, could offer partial or full loan forgiveness for tens of millions of borrowers.

Meanwhile, a large number of borrowers continue to be in forbearance for at least another six months after legal challenges postponed Biden’s key student loan repayment initiative called Saving on a Valuable Education, or SAVE. The appellate court heard oral arguments on this issue Thursday. According to Andrew Bailey, the Republican attorney general of Missouri, a decision from that court on the legality of this plan is anticipated within the upcoming weeks.

Advocates for student loan borrowers have expressed support for Friday’s announcement. Persis Yu, the deputy executive director of the Student Borrower Protection Center, commended the administration for its ongoing efforts towards debt cancellation despite the looming legal pressures from conservative groups.

“Over the past year, right-wing attorneys general have consistently targeted millions of working families burdened with student debt, pushing them further into financial hardship in a bid to gain political advantage,” Yu stated.